Swifty Corporation recorded operating data for its shoe division for the year as follows: Sales $600000 Contribution margin 150000 Total fixed costs 120000 Average total operating assets 400000 What is the ROI for the year if management is able to identify a way to improve the contribution margin by $40000, assuming fixed costs are held constant? 15% ° 17% 8% 18%

Swifty Corporation recorded operating data for its shoe division for the year as follows: Sales $600000 Contribution margin 150000 Total fixed costs 120000 Average total operating assets 400000 What is the ROI for the year if management is able to identify a way to improve the contribution margin by $40000, assuming fixed costs are held constant? 15% ° 17% 8% 18%

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 29BEB: Sales Needed to Earn Target Income Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in...

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Sales Needed to Earn Target Income Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in the coming year. Variable cost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed cost equals 78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the sales revenue that Chillmax must make to earn operating income of 81,900 by using the point in sales equation. 2. Check your answer by preparing a contribution margin income statement based on the sales dollars calculated in Requirement 1.
Concord Corporation recorded operating data for its auto accessories division for the year. Sales Contribution margin Total direct fixed costs Average total operating assets $750000 12.0% 38.0% 56.0% 32.0% 250000 90000 500000 How much is ROI for the year if management is able to identify a way to improve the contribution margin by $30000, assuming fixed costs are held constant?
Crane Company recorded operating data for its shoe division for the year as follows: Sales Contribution margin Controllable fixed costs Average total operating assets $12960000 O $540000 O $370000 O 24% 50% 540000 170000 1080000 What is the controllable margin for the year?
A projected income statement of Hailwork’s company for the coming year follows: Sales $506300 |Total Variable Cost 170865 Contribution Margin ? Total Fixed Cost 175000 Operating Income ? Compute contribution margin and contribution margin ratio Compute the Operating Income How much revenue must be earned in order to breakeven What is the effect on contribution margin ratio if the unit selling price and unit variable cost increase by 10 percent each?
Waterway Industriesrecorded operating data for its shoe division for the year. The company's desired return is 5%. $10540000 Sales Contribution margin 340000 Total direct fixed costs 120000 Average total operating assets 480000 What is the controllable margin for the year? 0 71% O $60000 O $220000 0.3%
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Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each) Contribution margin Fixed costs Income 1. Assume Hudson has a target income of $162,000. What amount of sales dollars is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? Note: Round your answer to 1 decimal place. . Dollar sales for target income 2. Margin of safety $ 2,160,000 1,728,000 432,000 324,000 $ 108,000 %
Blossom Company had the following operating data for the current year: sales, $460000; contribution margin, $100000; total fixed costs (controllable), $50000; and average total operating assets, $250000. If management is able to improve its contribution margin by $30000 and hold its fixed costs constant, what would Blossom's ROI be for the year? O 20%. O 32%. O 40%. O 17%.
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cost accounting; The manager of Dukey's Shoe Station estimates operating costs for the year will include $495,000 in fixed costs. Required; a. Find the break-even point in sales dollars with a cotribution margin ratio of 40 percent. b. Find the break-even point in sales dollars with a contribution margin ratio of 20 percent